Smit Lamnalco has been awarded a turnkey US$35 million contract by Petrofac to support single point mooring operations for the Iraq Crude Oil Export Expansion Project (ICOEEP)
The contract covers operations and maintenance of four SPM systems operations for the export facilities located approximately 20 km off Iraq’s Al Fao Peninsula which is near to a number of key oil installations.
The agreement involves the full scope of maritime support services for the crude oil export facilities. Services related to the contract are scheduled to commence in November this year.
Smit Lamnalco chief executive Daan Koornneef said, "It is one of our most complex SPM projects to date due to its short start-up phase, regional logistics and the operational complexity involved in delivering the full package of integrated maritime services."
The contract has an initial duration of one year with two annual extension options that could translate to a potential total contract value of USD$200mn. Smit Lamnalco said it would purchase seven new vessels to support the contract.
The contract award follows the support and maintenance agreement reached between Iraq’s South Oil Company and Petrofac in August.
ICOEEP is a key component of Iraq's Ministry of Oil’s Master Plan as the country looks to triple its oil exports.
